Space Matrix for the Coca-Cola Company (TCCC)

Financial Position (FP) Ratings

Net revenues grew 5% to $9.0 billion, and organic revenues (non-GAAP) grew 6%
for the quarter ended March 2021, after its net revenues were down by 11% decline
in the prior year.  4.0
Operating margin that included items impacting comparability, was 30.2%, 2.5% up
than in the prior year, while comparable operating margin (non-GAAP) was 31.0%
compared to 30.7% in the prior year. 3.0
EPS declined 19% to $0.52, and comparable EPS (non-GAAP) grew 8% to $0.55. 2.0
Cash from operations was $1.6 billion, up $1.1 billion versus the prior year. Free
cash flow (non-GAAP) was $1.4 billion, up $1.2 billion than the prior year, primarily
driven by cash from operations along with lower capital expenditures than the prior
year. 2.0
Coca-Cola Co's current ratio is 1.33, below the average industry ratio which is 1.46. 3.0
Leverage ratio in the first quarter of 2021 is 3.01, above the company's leverage 2.0
ratio despite net new borrowings of 1.55%. 16.0

Industry Position (IP)

The global non-alcoholic beverage market is projected to grow at a CAGR of 4.7%

during the forecast period (2021-2026). 2.0
COVID-19 pandemic challenges the beverage industry to digitize its supply chain
system. 5.0
Climate change threatens the main agricultural ingredients in non-alcoholic
beverages. 4.0
The beverage industry has a significant contribution to plastic waste pollution. 4.0
The main ingredient in the production of beverages is water which many areas in
the world have limited access to or suffer from scarcity.  4.0
19.0

Stability Position (SP)

The COVID-19 pandemic disrupted the supply chain management in the non-
alcoholic beverages industry due to trade restrictions and consumption decline after
imposed lockdowns. -6.0
Commodity prices continuously surging, hitting eight-year highs. -5.0
Global inflation rate is continuously rising high. US inflation surged 4.2% over the
12 months ended April, the highest rate recorded since the global financial crisis of
2007-09. -6.0
Increasing health awareness and consciousness among customers draws
downside on carbonated and sugar-sweetened beverages. -4.0
World population is continuously rising and is expected to reach 10 billion by the
year 2050. This will create more demand in the food and beverage industry. -5.0
-26.0

Competitive Position (CP)

The company has maintained a strong brand image over the years. -1.0
The company is currently operating in more than 200 countries around the globe
because of its comprehensive distribution system. -1.0
Continually innovates in global like Topo Chico Hard Selzter, Coca Cola Energy,
and region such as Authentic Tea House in Asia,
The packaging of Coca-Cola products is unique and identifiable in the market.  -5.0
The company have exceptional marketing capabilities, establishing its brand as a -2.0
“story-teller”.
Current market cap of Coca-Cola is $239.29B, making the world's 36th most -3.0
valuable company by market cap.
-2.0
-14.0

Conclusion

SP Average is -26.0/5 = -5.20                IP Average is 19.0/5 = 3.80

CP Average is -14.0/6 = -2.33                    FP Average is 16.0/6 = 2.67

Directional Vector Coordinates: X-axis = -2.33+(+3.80) = 1.47

                                                  Y-axis = -5.20 + (+2.67) = -2.53
The Coca-Cola Company (TCCC) should pursue competitive strategies.
Strategic Profile of The Coca-Cola Company

FP

CP IP

1.47, -2.53

SP

Based on the graph above, the Coca-Cola Company falls into the competitive
quadrant of the SPACE Matrix. It is located in the coordinates 1.47 and -2.53 for x-
component and y-component, respectively. The Coca-Cola Company is competing fairly
well in an unstable organization. Thus, the company has set of possible strategies
including in backward, forward and horizontal integration, market penetration, market
development and product development.